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Be aware of your credit scores. Get your free annual credit report and check for any errors in your credit history before you apply for a loan. |
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Be prepared to make a minimum cash downpayment or pay for some closing costs. There is no such thing as a free loan. |
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Lenders will require documentation of your financial picture. Make copies of the most recent tax and bank account statements and all credit accounts to have available when you apply for a mortgage loan. |
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Lenders will want to confirm your gross household income, not just your net pay. They will want to see cash reserves above the amount of the downpayment. |
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An appraisal will be required to verify that the house is worth the value of the loan. |
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Share information with the lender about the number of years that you plan to live in the house, your income growth potential, your current lifestyle preferences and your ability to save money - all of which will help identify the right loan for you. |
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7.
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Get a pre-approval letter for each home that you visit for potential purchase. |
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Be sure to gather all information requested by the lender and submit it prompty. Also, let your REALTOR know what is being requested by the lender. |
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9.
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Get your credit score on-line for a small fee from www.myfico.com. Take your score with you and shop for product and payment - not just the interest rate. Do not let multiple lenders pull your credit score just so you can get their interest rate quotes. |
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10.
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Ask about the potential of pre-payment penalties or special incentives for mortgage insurance premiums and see how they affect your loan payments over term of the loan. |